ITO, NEW DELHI vs. M/S. GECAS SERVICES (INDIA PVT. LTD.), NEW DELHI

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ITA 1113/DEL/2015Status: DisposedITAT Delhi30 August 2018AY 2010-114 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CBDT circular, with retrospective effect, mandated that appeals with a tax effect below Rs. 20,00,000/- should not be filed or pressed. Since the tax effect in this appeal was below the limit, it was dismissed.

What were the facts?

The Revenue filed an appeal before the ITAT. The assessee contended that the appeal was not maintainable as the tax effect was below the revised monetary limit set by a CBDT circular.

What were the issues?

Whether the appeal filed by the Revenue is maintainable before the Tribunal given the revised monetary limits for appeals stipulated by the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 268A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : ‘I-1 : NEW DELHI

Before: SHRI R.S. SYAL & SHRI K.NARASIMHA CHARY

For Appellant: Shri Sachit Jolly, Advocate
For Respondent: Shri Subha Kant Sahu, Sr. DR
Hearing: 30.08.2018Pronounced: 30.08.2018

ORDER R.S. SYAL, VP: The present appeal by the Revenue is directed against the final assessment order passed by the Assessing Officer u/s 143(3) r.w.s. 144C of the Income-tax Act, 1961 08th January, 2015, in relation to the assessment year 2010-11.

2.

During the course of hearing, the ld. AR submitted that pursuant to the mandate of section 268A the CBDT has issued Circular No. 03 of 2018, dated 11th July, 2018 with retrospective effect, revising the monetary limit to Rs.20,00,000/- for not filing appeals before the Tribunal. He further submitted that as the tax effect involved in the instant appeal is less than Rs.20,00,000/-, the extant appeal is not maintainable. The ld. D.R., although supported the order of the Assessing Officer, but could not controvert the fact that tax effect involved in this appeal is less than Rs.20,00,000/-.

3.

We have heard the parties and perused the relevant material on record. Going by the prescription of the aforenoted Circular, it is palpable that the Instruction is applicable to the pending appeals also with retrospective effect and there is a clear-cut direction to the Department to withdraw or not press such appeals filed before the ITAT, wherein tax effect is less than Rs.20,00,000/-. We are, therefore, of the view that the Revenue should have either not filed the instant appeal before the Tribunal or withdrawn the same as the tax effect in this appeal is admittedly less than the prescribed limit, i.e., Rs. 20,00,000/- for not filing the appeal. Accordingly, we dismiss the instant appeal without going into merits of the case. However, the Department is at liberty to file the Miscellaneous Application, if the tax effect is found to be more than the prescribed limit of Rs.20,00,000/- or otherwise.

Accordingly, the appeal of the Revenue stands dismissed.

4.

In the result, the appeal of the Revenue stands dismissed.

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